Egdon Resources — H1 2022 Earnings Presentation
22 slides from Egdon Resources's earnings presentation, Apr 26, 2022
Slide 1: Interim Results for the six months ended 31 January 2022 and Business Update
Egdon Resources plc Interim Results for the six months ended 31 January 2022 and Business Update
Slide 2: Egdon at a Glance
Egdon at a Glance • AIM: EDR • Established UK- based energy company • Onshore UK focus • Step-change in production and revenues • Significant onshore/nearshore exploration and appraisal opportunities • Material shale gas position in Northern England • Developing Energy Transition opportunities – Geo
Slide 3: Highlights
Highlights “The period has been has been an exceptional one for the Company. Revenues have increased fivefold and this has resulted in a return to profit after the challenges of recent years. Significantly increased commodity prices and increased production have made this possible. The Wressle field
Slide 4: Highlights
Highlights • Production increased by 116% to 36,714 barrels of oil equivalent (“boe”) or 200 boe per day (“boepd”) (H1 2021: 16,928 boe and 92 boepd) • Wressle production has significantly exceeded the original expectation of 500 barrels of oil per day (“bopd”) and is currently producing at permit c
Slide 5: Financials
Financials 6 months ended 31 January 2022: • Revenues increased by 500% to £2.551 million (H1 2021: £0.424 million) • Profit before impairments/write backs of £0.715 million (H1 2021: loss of £0.763 million) • Profit of £1.222 million including £0.507 million Ceres write-back (H1 2021: loss of £1.03
Slide 6: Subsequent Events
Subsequent Events • 10 March 2022 - revised incentive package put in place through the cancellation of all historical share options and issue of new share options to all staff • 14 March 2022 - planning permission was refused for extension to North Kelsey-1 exploration well consent and will be appea
Slide 7: Strategy
Strategy Focus on growth in production and Maintain geographical Conventional revenue through conventional UK Focus production, appraisal and focus on the UK Oil & Gas exploration projects A near-term focus on developing low Maintain our significant carbon energy transition projects, portfolio of un
Slide 8: Production - “Step-change in Revenues”
Production - “Step-change in Revenues” • Production increased by 116% to 36,714 boe or 200 boepd (H1 2021: 16,928 boe and 92 boepd) • Revenues increased by 500% to £2.551 million (H1 2021: £0.424 million) • The average realised price per barrel of oil equivalent was 178% higher at $93.81/boe (H1 202
Slide 9: Wressle – “Continuing to Exceed Expectations”
Wressle – “Continuing to Exceed Expectations” Wressle (EDR 30%) • Exceeded our pre-production expectations of 500 bopd following the successful proppant-squeeze and coiled-tubing operation • Instantaneous rates of over 1000 bopd have been achieved • Early restrictions to production addressed by upgr
Slide 10: Wressle – “Next Steps”
Wressle – “Next Steps” Monetising the Gas and optimising production rates: • The likely preferred gas monetisation approach is export of gas via a short pipeline (c. 600m) into the local gas network • This will require regulatory consents (Planning and EA) with completion targeted for gas sales duri
Slide 11: Ceres – “Late-Life Renaissance”
Ceres– “Late-Life Renaissance ” Ceres (EDR 10%) • The Ceres gas field is undergoing a late-life renaissance contributing material revenues and cash flow • During the period, Ceres net production averaged 54 boepd with gas prices averaging 184 p/therm or $123.5/boe (H1 2021: 24p/therm or $29.2/boe) •
Slide 12: Keddington – “Accessing remaining reserves”
Keddington– “Accessing remaining reserves” Keddington (EDR: 45%) • Contributes tangible revenues • A subsurface review of the field has highlighted a viable target in the east of the field that could deliver 180,000 barrels of incremental production • With planning consent already in place, this pre
Slide 13: Waddock Cross – “Redevelopment to increase production”
Waddock Cross – “Redevelopment to increase production” Top Bridport Sandstone (Cycle 2) Depth Map (m TVDss) – showing WX-4z Trajectory Waddock Cross (EDR: 55%) • Shut-in Bridport Sandstone oil field (Dorset) • Significant Stock Tank Oil Initially in Place (STOIIP) volume of 57 mmbbls • New horizonta
Slide 14: Cloughton – “Gas Discovery”
Cloughton – “Gas Discovery” Cloughton (Egdon 40%) • Egdon has assumed the operatorship of PEDL343, increasing its interest to 40% • The NSTA has agreed an extension to the Licence to 20 March PEDL343 2024 along with an associated work programme P1929 • The licence contains the Cloughton tight gas di
Slide 15: Biscathorpe & North Kelsey
Biscathorpe & North Kelsey Biscathorpe (Egdon 35.8%) North Kelsey (PEDL241: Egdon 50%) • The Biscathorpe-2 side-track would target: • Prospect mapped from 3D seismic, with multiple • Dinantian Carbonate, where a 68 metre oil reservoir targets = Wressle analogue column was discovered in Biscathorpe-2
Slide 16: Resolution – “Appraisal of Large Offshore Gas Discovery”
Resolution – “Appraisal of Large Offshore Gas Discovery” Resolution & Endeavour Gas Discoveries (Egdon 100%*) • Resolution Gas Discovery (P1929) = Early North Sea discovery (Total: 1966) Pensacola Prospect to be • CPR (Schlumberger) assessed gross Mean Contingent drilled by Shell resources of 231 bc
Slide 17: Shale Gas – “A strategically important national resource”
Shale Gas – “A strategically important national resource ” • The Group holds a significant unconventional resources portfolio in Northern England, totalling 151,742 net acres (614km2 net) with independently (ERCE) estimated Mean volumes of undiscovered GIIP of 37.6 TCF (net) • Primary focus is the G
Slide 18: Gainsborough Trough – “A World Class Resource”
Gainsborough Trough – “A World Class Resource” • Basin characterised by simple structure and lack of extensive faulting • 429m of hydrocarbon bearing shales encountered within the primary target – Gainsborough Shale - Estimated Gas in Place of c. 640 bcf per square mile South-North schematic cross-s
Slide 19: Energy Transition Opportunities
Energy Transition Opportunities • The UK is committed by law to reaching “net zero” carbon emissions by 2050 • The Energy Transition presents a number of business challenges and opportunities • Egdon sees the potential for repurposing its fields, sites and wells for renewable purposes and using its
Slide 20: Geothermal - “Heat as a Potential Business”
Geothermal - “Heat as a Potential Business” • Geothermal energy projects can utilise Egdon’s core skills, knowledge, and operating experience • Our initial focus has been on the geothermal potential within our existing wells and fields. • Shut-in well at Dukes Wood is located in an area of anomalous
Slide 21: Outlook
Outlook • Production guidance for the full financial year 2021-22 is 240 boepd, with H2 2022 guided at 275-285 boepd • In the short-term, we will focus on the highlighted projects, whilst maintaining our substantial acreage position in the nascent shale-gas play and working to demonstrate that UK sh
Slide 22: Disclaimer
Disclaimer This document comprises the written materials/slides for a presentation (together with any accompanying information communicated verbally (including any questions and answers session and any material distributed with it), the Presentation) by Egdon Resources plc (the Company). This Presen